Digital Euro Ready for Next Step, Awaits Legislative Action: ECB’s Christine Lagarde
The European Central Bank (ECB) has announced that the digital euro is prepared to move forward but is now awaiting approval from legislative bodies such as the European Parliament and the European Commission. ECB President Christine Lagarde emphasized the readiness of the digital currency on the occasion of the ECB’s closing press conference of the year.
Technical Readiness Achieved, Political Approval Pending
Christine Lagarde stated firmly, “We have done our work, we have done our part. Now it is up to the European Council and, later, certainly the European Parliament to decide whether the Commission’s proposal is satisfactory and how it can be enacted into law or amended.” This marks a significant milestone reflecting the progress made in the development and testing of the digital euro infrastructure.
In September, ECB Executive Board member Piero Cipollone outlined a realistic timeline, anticipating the digital euro’s introduction around mid-2029. Cipollone described this as a “fair assessment” and noted that discussions among member states are proceeding smoothly.
With the foundational systems in place, the focus now shifts to political institutions responsible for legislation and approval. Lagarde expressed high hopes for the legislative work ahead, signaling strong support among her and other EU leaders for the initiative.
Stablecoins under MiCA Seen as Secure
During the press conference’s Q&A session, Lagarde addressed concerns that stablecoins might threaten Europe’s monetary sovereignty. She dismissed these fears by highlighting the European Union’s regulatory framework on crypto-assets (MiCA), which ensures that stablecoins operating within the law are considered safe and properly supervised.
“We are fortunate in Europe to have MiCAR,” Lagarde said, referencing the legal framework that governs crypto instruments like stablecoins. She further noted that regulated stablecoins could represent a viable alternative payment method with specific benefits.
However, she cautioned about risks related to multiple issuances of stablecoins potentially endangering the underlying reserves. “In this particular area, we must be extremely attentive to any risks for the system itself and for stablecoin holders,” she warned.
Digital Euro to Complement, Not Replace Cash
Lagarde reiterated that the ECB’s goal is not to become a role model for the digital euro but to ensure that a stable currency anchor exists for the financial system in the digital age. She affirmed the ECB’s commitment to maintain widespread availability of euro banknotes.
Importantly, the digital euro is designed to supplement, not replace, physical cash. It aims to be user-friendly, cost-effective, fast, efficient, and privacy-respecting, functioning both online and offline.
Additionally, Lagarde touched on the ECB’s data-driven approach to monetary policy decisions, projecting that inflation is expected to align with the bank’s 2% target by 2028. —
As the European Union’s institutions prepare for critical debates and votes on the digital euro’s future, market observers and citizens alike watch keenly. A successful rollout of the digital euro could mark a pivotal evolution in how digital currencies integrate with traditional monetary systems within Europe.
By Manuela Richter
Published on December 19, 2025
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